S Election
Elect S-Corp Status the Easy Way
Elect S-Corporation tax status and reduce your self-employment tax burden — we prepare and file IRS Form 2553 on your behalf, confirm your eligibility, and ensure you meet the critical filing deadline.
We prepare and file IRS Form 2553 to elect S-Corporation tax treatment for your LLC or corporation, allowing business profits to pass through to shareholders without being subject to self-employment tax on the full amount. S-Corp election lets owners pay themselves a reasonable salary (subject to payroll tax) and take additional profits as distributions (not subject to SE tax) — a strategy that can save thousands annually. We confirm eligibility, prepare the form accurately, and file before the IRS deadline.
Step 01
Confirm your company eligibility
Step 02
We prepare and file Form 2553 with the IRS
Step 03
You receive your approval notice from the IRS
Common Questions, Clear Answers
S-Corps avoid double taxation - profits pass through to shareholders who pay personal income tax only. You can also save on self-employment taxes by paying yourself a reasonable salary and taking remaining profits as distributions (not subject to SE tax). This can result in significant tax savings.
You must file Form 2553 by March 15th for it to take effect for the current tax year, or within 2 months and 15 days of forming your business. Missing this deadline means waiting until the next tax year. Late election relief is possible in some circumstances - we can help determine if you qualify.
S-Corps have restrictions: maximum 100 shareholders, all must be U.S. citizens or residents, only one class of stock allowed, and certain entity types (partnerships, non-resident aliens) can't be shareholders. Both corporations and LLCs can elect S-Corp status if they meet these requirements.
An LLC taxed as an S-Corp gets tax benefits of S-Corp status while maintaining the operational flexibility and liability protection of an LLC. A traditional S-Corporation has more formal requirements (board meetings, minutes, bylaws). The tax treatment is identical; the main differences are formation and governance requirements.
